New York State Gaming Commission sues Kalshi, seeking court enforcement of an investigative subpoena.
1 hours ago
According to court documents, the New York State Gaming Commission has filed a petition with the New York State Supreme Court, New York County Branch, to compel Kalshi to comply with an investigation subpoena issued on July 31 under Section 104(7) of the state’s Horse Racing Law. The subpoena relates to sports event contracts, operations targeting users under 21, advertisements that characterize products as bets, and equity and corporate structure. The commission said the move is intended to decide whether to impose civil penalties on Kalshi and other parties, as well as the amount of such penalties. Kalshi has not yet publicly responded. Earlier, the New York State Attorney General and Governor sued Kalshi on July 31, seeking at least $36 billion in damages. Federal Judge Torres rejected Kalshi’s request for a preliminary injunction on July 7; appeals courts hold conflicting stances, with the Third Circuit Court ruling in Kalshi’s favor, while the Ninth and Sixth Circuits support state regulators.
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